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5.
Purchase Behavior in B2B <ul><li>So the key is to find out, what your customer is EXACTLY looking for </li></ul><ul><ul><li>The fact is, that most of the time your customer doesn’t even know! </li></ul></ul><ul><ul><li>This is a big chance for you! </li></ul></ul><ul><li>This on the other hand is depending on the market your customer is doing business in </li></ul><ul><ul><li>B2B Sales = Industrial Marketing </li></ul></ul>Not quite the case for industrial B2B Sales…

6.
A view significant differences between B2B and B2C <ul><li>Customer need to buy in order to stay profitable </li></ul><ul><li>Purchase is structured and depends on multiple persons </li></ul><ul><li>Multi-level buying procedure that expands over long period </li></ul><ul><li>Complex Products / Service </li></ul><ul><li>Customer is going with his gut feeling (Price can overshoot costs tremendously ) </li></ul><ul><li>Needs can change rapidly according to trends </li></ul><ul><li>High Brand Awareness and Importance of Trend Setter </li></ul><ul><li>Selling at special occasion & place </li></ul>

9.
Business-to-Business Sale <ul><li>Its all about personal relationships (and power) </li></ul>Its all about strategies Business Life is a game and not a war, so don’t take Sun Tzu & Clausewitz literally! That’s your customer, not you!

15.
SAD BUT TRUE <ul><li>… Customers don’t want to see Salespeople anymore! </li></ul><ul><li>John M. Coe </li></ul><ul><li>Mc Graw-Hill Book, 2003 </li></ul>Marketing is the way to make them call you!

16.
Your Customer has a Lifecycle – the CLC <ul><li>CLC = Basis for CRM + KAM </li></ul><ul><li>Getting a potential customer's attention = MARKET </li></ul><ul><li>teaching them what you have to offer = SELL </li></ul><ul><li>turning them into a paying customer = FULLFILL </li></ul><ul><li>keeping them as a loyal customer who urges other customers to join the cycle = CARE </li></ul>The repeat customer is your best marketer!!!

17.
Do you know who are you selling to? Geoffrey A. Moore, Crossing the Chasm, Marketing and Selling High-Tech Products to Mainstream Customer (revised edition), HarperCollins Publishers, New York, 1999

18.
Strategies to cross cross the chasm <ul><li>Early Adopters : Driven by a dream – take high risks to achieve a rent (ROI) of high magnitude </li></ul><ul><li>Achieve leadership in specific niche </li></ul><ul><li>Assembly Invasion Force by thinking through your customer’s problem </li></ul><ul><li>Differentiate with your elevator pitch </li></ul><ul><li>Cross the chasm with direct sales </li></ul>Early Majority: they won’t buy from you until you are established & you can’t get established until they buy from you. REFERENCES PATIENCE

19.
1 out of a 1.000.000.000 sales consulting advises in B2B <ul><li>Get your value figured out, it is most important to your success </li></ul><ul><li>Decide who fits your model, who are your best prospective customers </li></ul><ul><li>Understand your strengths, and focus on them </li></ul><ul><li>Focus on asset-based thinking rather than deficit-based thinking </li></ul><ul><li>Prospect to warm leads and more probable-prospective customers </li></ul><ul><li>Grow your alliance network like a big web, and nurture it often </li></ul><ul><li>Appreciate existing customers and learn from them </li></ul><ul><li>Create systems and tools to track revenues, profits, expenses, and other metrics </li></ul><ul><li>Get great at selling - overcome the &quot;selling is bad&quot; mindset </li></ul><ul><li>Creatively build products, services, and the business as a whole </li></ul>

21.
Industrial Marketing during a recession <ul><li>Spend time marketing to the people you already know </li></ul><ul><li>Spend time marketing to prospects who are ready to buy </li></ul><ul><li>Include customer references, reviews, awards, and other validation to convince risk-adverse buyers </li></ul><ul><li>Align Sales and Marketing. Today's prospects start their buying process by interacting with online marketing channels long before they ever speak with a sales representative. </li></ul><ul><li>Sales delivers revenue and Marketing is a cost center (?) - change these perceptions especially in a recession! </li></ul>HESITATION

23.
The classical purchasing process in organizations <ul><li>Organizations are purchasing in order to: </li></ul><ul><li>Increase revenue </li></ul><ul><li>Decrease costs </li></ul><ul><li>Conform to regulations </li></ul><ul><li>The organization usually runs through 8 phases in the purchasing process </li></ul>

24.
Addressing each phase in the purchasing process <ul><li>Noticing Demand Make them aware of the demand </li></ul><ul><li>Describing Demand Get involved in the description </li></ul><ul><li>Specifying Product Make him specify your product </li></ul><ul><li>Supplier Screening Tell him what to screen for </li></ul><ul><li>Collecting Quotes Find out his parameters for the deal </li></ul><ul><li>Selecting Supplier Again, show competence </li></ul><ul><li>Fixing order details Price is only a small portion of the deal </li></ul><ul><li>Evaluating Performance This was a battle – win the war! </li></ul>COMMUNICATION!!

25.
Short Excursus to Key Account Management <ul><li>USER: he registered demand & he defines the specification </li></ul><ul><li>INFLUENCER: he is a specialist and will be called in for important decisions </li></ul><ul><li>PURCHASER: He negotiates conditions – he is the clerk and not the decision maker </li></ul><ul><li>DECISION MAKER: he relies on its specialists and knows nothing about the product. He is the one that judges the value and signs off. </li></ul><ul><li>SUPPORTER: he is your internal pipeline to hidden information. </li></ul>Varies between initial & repeated purchase! You are selling to a GROUP of people!

26.
1. Noticing demand -> Make them aware of the demand <ul><li>It’s important to know the capabilities of the potential customer in relation to the one’s of its competitors </li></ul><ul><li>Make them aware of the fact that your solution provides a competitive advantage to his product & service </li></ul><ul><ul><li>By decreasing his production costs </li></ul></ul><ul><ul><li>By increasing his output </li></ul></ul><ul><ul><li>By improving his quality </li></ul></ul><ul><ul><li>By boosting his status in front of his customer / his competition </li></ul></ul>TOTAL COST OF OWNERSHHIP

27.
TCO – Total Cost of Ownership <ul><li>Value-to-Customer: what is the REAL value of your product – individual from customer to customer! </li></ul><ul><li>The purchasing price is just a small portion – what are the running costs?? </li></ul>

28.
2. Describing Demand -> Get involved in the description <ul><li>The description of the demand is the basis for the product specification </li></ul><ul><li>If you can not fulfill the product specification you are out of the race </li></ul><ul><li>At this stage it is essential to establish personal contact with the person in charge (for the investment goods industry it is mainly the technician) </li></ul><ul><li>There are always more than 1 solution for a given problem , let him describe it the way that your product is addressing it </li></ul>The description is the main part of the investment proposal that will run through a signature loop within the company

29.
3. Specifying Product -> Make him specify your product <ul><li>This is the most horrifying part in the process </li></ul><ul><li>Your goal is to make him create a “lock out” spec, so let him specify items, that can only be addressed by your product </li></ul><ul><li>That’s the phase where you have to link the technicians of your customers with your technicians </li></ul><ul><li>Give him options </li></ul>

30.
4. Supplier Screening -> Tell him what to screen for <ul><li>That’s a done deal if you did your job during specification </li></ul><ul><li>You know exactly your competition and thus the potential supplier for your customer </li></ul><ul><li>Often, there is not just an alternative product available but also an alternative solution </li></ul><ul><li>You have to know your potential competition vertically AND horizontally </li></ul>

32.
6. Selecting Supplier -> next to last move: “Check” <ul><li>The catwalk – you NEED to be the one that differentiates </li></ul>“ Is there anything else I can help you with?” <ul><li>Innovation History </li></ul><ul><li>Financial Situation, Ownership </li></ul><ul><li>References, Sustainability </li></ul><ul><li>Problem solving capability, reaction time etc </li></ul>

36.
The essence in International Business The Ricardo Model You can never change a culture!

37.
Affordable Loss and Opportunity Costs <ul><li>International Sales Strategy upfront is not wise – start local! </li></ul><ul><li>If there is no local market – get a trustworthy international partner! </li></ul><ul><li>If there is no good partner </li></ul><ul><ul><li>Don’t enter the business </li></ul></ul><ul><ul><li>Use the internet </li></ul></ul><ul><li>What is your affordable loss considering: </li></ul><ul><ul><li>Cultural Risk Control Risk Exchange Rate Risk Legal Risk Service Risk Economic Risk </li></ul></ul>What else could you do instead?

38.
Principal-Agent-Theory in international B2B Sales <ul><li>Whenever one individual depends on the action of another, an agency relationship arises. The individual taking the action is called the Agent . The affected party is the Principal . </li></ul><ul><li>Typical for local sales representatives </li></ul><ul><ul><li>Agent want to maximize commission and minimize workload (you can not proof!) </li></ul></ul><ul><ul><li>He wouldn’t share all customer information with you, you wouldn’t share all deal information with him. </li></ul></ul>

40.
How we are going to work in the future? <ul><li>New Business Models will evolve mainly because of </li></ul><ul><li>the world is getting REALLY flat (see T. Friedman!!!) </li></ul><ul><li>Demographics </li></ul><ul><li>Technology </li></ul>From Command & Control to Coordinate & Cultivate Connecting people is the enabler (“we are one”) But it will be difficult to teach a machine the principles of this side of our brains 

41.
The main reasons to get involved in Web 2.0 <ul><li>Enterprises will have to implement more and more Web 2.0 Technologies in order to provide the framework for the problem solution competence of the future workforce </li></ul>

43.
Catching the long tail for niche segments – a business? <ul><li>Costs to reach the long tail (the niche segments) in traditional marketing are enormous, because demand in local areas is too small – but it isn’t globally! </li></ul><ul><li>Selling less to more, but still – quality is key </li></ul><ul><ul><li>Democratization of resources (e.g. wikipedia) </li></ul></ul><ul><ul><li>Democratization of sales (e.g. amazon, ebay) </li></ul></ul><ul><ul><li>Reduction of sourcing costs (e.g. amazon reviews) </li></ul></ul>

46.
Some Notes from my old trousers <ul><li>Speed is trump !! </li></ul><ul><li>Learn to be patient, always smile  </li></ul><ul><li>Don’t get choked about anything </li></ul><ul><li>Be different but stay credible </li></ul><ul><li>The money you have is yours! </li></ul><ul><li>Refuse the sale before signing a bad deal </li></ul><ul><li>Try to think like your customer </li></ul><ul><li>Strategic Marketing is the key to success </li></ul>